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Charter Hall Retail REIT acquires Secret Harbour Shopping Centre for $33.2 million

28/06/2013

Charter Hall Retail REIT (ASX:CQR) (the 'REIT') today announced it has executed a contract to acquire the Secret Harbour shopping centre and adjoining vacant land south of Rockingham, Western Australia, for $33.2 million. The transaction represents an initial yield of 7.8% on the shopping centre component plus vacant land at $274 per square metre of site area.

Located approximately 50 kilometres from Perth's CBD, Secret Harbour is a 5,574 square metre neighbourhood shopping centre anchored by a strongly performing Woolworths supermarket with 16 specialty retailers and a Caltex Service Station. The centre is fully leased with the Woolworths lease contributing 51% of current base rent.

The property includes an additional 31,000 square metres of development land, zoned District Town Centre, providing an opportunity for expansion of the centre.

The acquisition will be funded from existing debt facilities which will be repaid with proceeds from the sale of the REIT's Polish assets on settlement in September 2013, confirming the REIT's expectations that the sale and swap restructure, combined with redeployment opportunities, will be earnings neutral.

Fund Manager, Scott Dundas, said: “The acquisition is in line with our strategy to redeploy proceeds from the recent sale of the REIT's Polish portfolio into high quality Australian supermarket anchored retail assets which fit our investment criteria.

“With the area's forecast population growth, averaging 4.6% per annum between 2013 and 2018, and the centre's future expansion potential, we expect Secret Harbour to contribute stable long term returnsand to be a high quality addition to the REIT's non-discretionary portfolio of shopping centres,” Mr Dundas added.

For further information, please contact:

Scott Dundas
Fund Manager
Charter Hall Retail REIT
T: +61 8295 1009
scott.dundas@charterhall.com.au
Philip Schretzmeyer
General Manager Finance
Charter Hall Retail REIT
T: +61 8295 1023
philip.schretzmeyer@charterhall.com.au
Investor enquiries:

Kylie Ramsden
Head of Listed Investor Relations
Charter Hall
T: +61 2 8295 1016
kylie.ramsden@charterhall.com.au
Media enquiries:

Rachel Mornington-West
Head of Marketing and Communications
Charter Hall
T: +61 2 8908 4093
rachel.mornington-west@charterhall.com.au

About Charter Hall Retail REIT:

Charter Hall Retail REIT is a leading listed real estate investment trust with a portfolio of predominantly Australian high quality supermarket anchored neighbourhood and sub-regional shopping centres.

Charter Hall Retail REIT is managed by Charter Hall Group (ASX:CHC), one of Australia's leading fully integrated property groups, with over 22 years' experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has $10 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth. The Group's success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its usiness approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group. For further information on Charter Hall Group and Charter Hall Retail REIT go to www.charterhall.com.au.

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